Indonesia: Reinsurance sector to grow more than 10% in 2018
Source: Asia Insurance Review | Jan 2018
Prospects are upbeat for the reinsurance industry in Indonesia that saw premiums grow by 13% to IDR8.35 trillion (US$535 million) in the first nine months of this year, according to the Indonesian General Insurance Association (AAUI). For 2018, the reinsurance growth rate is forecast at 10% to 15%.
AAUI Executive Director Achmad Sudiyar Dalimunthe said the growth has been supported by such classes of business as aviation, personal accident and credit insurance. This is despite the fact that motor vehicle insurance, which has a major share of the insurance market, has seen a decline.
“Usually in the fourth quarter, there will be more premiums,” Mr Achmad told Kontan.co.id recently.
Reinsurance players are also quite optimistic about the sector next year. PT Reasuransi Maipark Indonesia, for example, targets premiums to reach IDR500 billion next year. This would be a 42% increase from this year’s prediction of IDR352 billion in premiums. A